From Yahoo Finance: 2025-05-02 17:40:00

In our recent list of the 10 Best NASDAQ Stocks to Buy According to Billionaires, we focus on PDD Holdings Inc. (PDD) and its standing among other top NASDAQ stocks favored by billionaires.

The US economy saw a 0.3% contraction in the first quarter of 2025, a significant drop from the 2.4% growth in the previous quarter. Tariff uncertainty played a major role, with net exports decreasing by 4.8%, causing the NASDAQ to slip 0.09% on May 1.

Fundstrat’s Tom Lee discussed the stock market’s outlook amidst the tariff situation, highlighting the market’s uncertainty about the economy’s trajectory. The market is grappling with questions about the impact of tariffs on future quarters and whether equities have reached their lows or are facing further uncertainty.

Steve Liesman added to Lee’s analysis, noting that the current stock market is heavily influenced by President Trump’s policies. With GDP forecasts down due to policy uncertainties, investors are eagerly awaiting signs of a potential economic rebound in the next quarter.

PDD Holdings Inc. (PDD) stands out as a top NASDAQ stock to buy according to billionaires, with 21 billionaire investors holding shares worth $2,146,808,856. The Chinese e-commerce company has shown revenue growth and operating profit increases, despite facing challenges such as import charges due to US-China tariffs.

Despite challenges, analysts remain positive about PDD’s growth potential, with an average price target indicating a 46.90% upside from current levels. The company’s focus on platform sustainability and supply chain improvements bode well for its future performance.

GreenWood Investors highlighted PDD as a notable detractor in its Q4 2024 investor letter, ranking it 8th among the best NASDAQ stocks to buy according to billionaires. While PDD shows promise, the firm believes AI stocks offer greater potential for higher returns in a shorter time frame, with some AI stocks already outperforming popular options in 2025.

For investors seeking AI stocks with significant growth potential, exploring alternatives to PDD may be beneficial. Consider looking into AI stocks trading at less than 5 times their earnings for promising investment opportunities.

Read more: Among the Best NASDAQ Stocks to Buy According to Billionaires